Stock Market Crash - No thread on today's stock market crash?

[WalterWhite]

I never make predictions. Sometimes I'm right in the short term, sometimes not. It's often just a matter of making a move a little too early if it doesn't go your way in the short term.

My goal is to be largely right in the long term and increase wealth greatly over that time. Been doing this over 21 years. The best thing the small retail investor can do is not get bogged down in the short term drama, and keep their eye on retiring in 20, 30, or 40 years with a nice nestegg.

Investing $100 every week for 40 years in a IRA or Roth, with an assumed total return of 10% over that time (like what the S&P has roughly averaged over the last 50 years or so), and with minimal fees and expenses (and no withdrawals) will result in over $2 million by that time. If you can put another $100 or $200 a week into a work plan as well, all the better - particularly if they match.

This is good advise and I have seen it all investing!  It was almost comical watching CNBC today when the talking heads were acting like the market comeback was a signal to buy.  They change their views every time the market moves and its not a good idea to get caught up too much in the day to day vicissitudes of an unstable market.

I do think the QE was a prelude to all of this.

[jude2]

I think I got lucky getting Nike and Verizon at the lows today. Nice gains, wish I would have bought a lot more.

[_aj_]

Interdasting...futures up 4% across all indices, yet the NYSE just invoked Rule 48 pre-open. Somebody expects the bottom to drop out again.

[El Diablo Blanco]

A lot of idiots at working claiming they lost or made money yet still own the stock.  You don't lose or make shit until you sell.

[pissant]

bottom is not in. short covering and panic buying in full swing today.

[El Diablo Blanco]

bottom is not in. short covering and panic buying in full swing today.

A lot of day traders taking advantage of the chaos.  Will be like a roller coaster for the next few days until things settle.  Most companies who are having poor earnings are scrambling because they don't want to issue a bad earnings report in a fragile market.

[pissant]

wish I was ballsy enough to day trade. everytime I do I loose my lunch so my time horizon is a bit longer.

[El Diablo Blanco]

wish I was ballsy enough to day trade. everytime I do I loose my lunch so my time horizon is a bit longer.

Day trading is serious business.  Have you heard of the group in NJ that paid big money for super fast fiber internet from the NYSE to their office so they literally get stock quotes a couple seconds quicker than anyone else allowing them to buy and sell to make quick profits.  Pretty insane the length people will go to.

[pissant]

yea pretty sure i watched a 60min about that. Its call collocation or co locating. Crazy shit

[_aj_]

Day trading is serious business.  Have you heard of the group in NJ that paid big money for super fast fiber internet from the NYSE to their office so they literally get stock quotes a couple seconds quicker than anyone else allowing them to buy and sell to make quick profits.  Pretty insane the length people will go to.

JPM is in the colo cage right next to the NYSE trade system. It isn't "seconds" quicker, it's at best 3-5 milliseconds faster. And that's all a HFT algo needs.

[FitnessFrenzy]

If you are a net buyer of stocks, which most people generally should be unless they are in or near retirement, you want prices to be lower, rather than higher. It is just like anything else being on a discount, plus it raises yields. Despite weaknesses in some multinationals with large exposure to emerging markets, as well as the energy sector pretty much across the board, the financials for the large majority of S&P 500 companies have remained strong. Most of the pullback is due to lower P/E multiples as growth is slowing. Add in the uncertainty with the timing of the fed rate hike, and that's why you are seeing this correction. Now it is possible we could be heading toward a recession but that is just part of the normal business cycle, and it shouldn't be anything like 2008. When the market started falling in late 2007 and early 2008, you had several economic catalysts such as the bankruptcies of Countrywide, Bear Sterns, and Lehman Brothers. We don't have that right now, as the market is mostly moving on fear and the slowdown in China. I will bet you the Dow will hit 22,000 by 2017.

good post.

[_aj_]

Interesting close today. Wonder what China is going to do tonight?

[Croatch]

The first place I go for all my investing advice is getbig.com.  It's free and usually spot on.  Thanks!!
It's well known that financial site and experts in the field revere GB as the "go to" when the market gets rough.  Plus, you can see some oiled up men in thongs as a little "bonus" for the non schmoes out there.

Serious question...do you think the drop in the market has anything to do with the Olympia coming up in a month?  Heath could win, but Kai is knocking at the door...then you have Ramy...the wildcard.  Certainly this has to play on the mind of investors everywhere.  Unnecessary nerves may have led to abrasive trading trends, resulting in a hit on the market.  I'm predicting the market goes up 1500 points, once the Olympia takes place.  I would go long on posing oil stocks and a moderate hold on insulin labs.

[Agnostic007]

The first place I go for all my investing advice is getbig.com.  It's free and usually spot on.  Thanks!!
It's well known that financial site and experts in the field revere GB as the "go to" when the market gets rough.  Plus, you can see some oiled up men in thongs as a little "bonus" for the non schmoes out there.

Serious question...do you think the drop in the market has anything to do with the Olympia coming up in a month?  Heath could win, but Kai is knocking at the door...then you have Ramy...the wildcard.  Certainly this has to play on the mind of investors everywhere.  Unnecessary nerves may have led to abrasive trading trends, resulting in a hit on the market.  I'm predicting the market goes up 1500 points, once the Olympia takes place.  I would go long on posing oil stocks and a moderate hold on insulin labs.

Seriously.. I would pit some of those here against any Fund advisor the average person looks to for advise. I've been out performing everyone I know (small sampling, but its a sampling) who is using a professional manager for the last 2 years. So while yes, it is unwise to get financial advise just any where, you can't discount it because it shows up here...  

By the way... I would NOT take my advice on investing.. but there are some smart folks here

[jude2]

A lot of idiots at working claiming they lost or made money yet still own the stock.  You don't lose or make shit until you sell.

I try to explain this to people all the time.

[Hypo]

China was fucked in the first place. P/E was outrageous. State controlled stock market was bound to fail.

Plus I don't believe for a second what their government says about the state of their economy. 7% growth? Try 5.

[pissant]

China was fucked in the first place. P/E was outrageous. State controlled stock market was bound to fail.

Plus I don't believe for a second what their government says about the state of their economy. 7% growth? Try 5.

you know the state partially controls our stock market as well right? Did you actually believe they didnt lol? HAHAHAHA

[2Thick]

Seriously.. I would pit some of those here against any Fund advisor the average person looks to for advise. I've been out performing everyone I know (small sampling, but its a sampling) who is using a professional manager for the last 2 years. So while yes, it is unwise to get financial advise just any where, you can't discount it because it shows up here...  

By the way... I would NOT take my advice on investing.. but there are some smart folks here

Yeah, you can't responsibly give anyone specific investment advice without knowing a great deal about their own unique needs, goals, risk tolerance, etc, etc.

I talk on here about what I've done and am doing, and what I've read, seen, heard, etc from others - but it's certainly not meant as specific advice for anyone else.

I can give an opinion about something somebody asks me, but it doesn't necessarily mean that they should or should not take my opinion to heart - they're not me, and I'm certainly not always right. Some here like to pm me for investment advice under one gimmick, while they roast me on the board under another gimmick - as if I don't know. 

Some REALLY smart and super-rich people are saying we may actually see MORE QE!  

http://www.marketwatch.com/story/bridgewaters-ray-dalio-sees-fed-launching-quantitative-easing-measures-2015-08-25

[Coach is Back!]

I've lost over $22k this week.

[calfzilla]

I've lost over $22k this week.

Just hold on a couple months and you'll have you money back.

I've been afraid to check mine. 

[Hypo]

you know the state partially controls our stock market as well right? Did you actually believe they didnt lol? HAHAHAHA

No shit, dickhead? That and the economy. It's called a central bank and capital controls. It also modifies behaviour too, pissant.

Just not at the levels the Chinese are doing. Get a clue. 

[Coach is Back!]

Just hold on a couple months and you'll have you money back.

I've been afraid to check mine. 

Yeah, I'm not worried. But for me it's a hell of a hit in a week.

[_aj_]

Yeah, I'm not worried. But for me it's a hell of a hit in a week.

Checking daily balances in equities is a recipe for insanity.

I did have a co-worker back in the 90's that was waiting for his portfolio to hit a certain dollar amount and then he was going to liquidate it and quit his job. He kept a little window open on his computer screen with his current portfolio value.

I quit that job in '99, but I heard that like 3 months later, he hit his magic number and did exactly what he said he would do. I think that he is just biking around the country now, the only thing that he really liked doing.

[FitnessFrenzy]

Checking daily balances in equities is a recipe for insanity.

I did have a co-worker back in the 90's that was waiting for his portfolio to hit a certain dollar amount and then he was going to liquidate it and quit his job. He kept a little window open on his computer screen with his current portfolio value.

I quit that job in '99, but I heard that like 3 months later, he hit his magic number and did exactly what he said he would do. I think that he is just biking around the country now, the only thing that he really liked doing.

Good for him. He is providing for himself and doing what he loves. 

and on an unrelated matter, I agree that checking your portfolio every day is a waste of time.

[pissant]

No shit, dickhead? That and the economy. It's called a central bank and capital controls. It also modifies behaviour too, pissant.

Just not at the levels the Chinese are doing. Get a clue. 

K moron you made it soundn like the Chinese were the only ones...you are truly the idiot I love.